Question

A car is bought at 450000. Its value depreciates at the rate of 5% per annum, find its value after 2 years.​

Answer 1

The value of the car after 2 years is 406125.

Step-by-step explanation:

Here, the value of the car is 450000

Its value depreciates at the rate of 5% per annum.

So, the value of the car after 1 year be

• $\quad 450000-450000\times\dfrac{5}{100}$

• = 450000 - 22500

• = 427500

Again, the value of the car after another 1 year be

• $\quad 427500-427500\times\dfrac{5}{100}$

• = 427500 - 21375

• = 406125

∴ the value of the car after 2 years be 406125.